Neuberger Berman Group LLC Lowers Position in Yum China $YUMC

Neuberger Berman Group LLC trimmed its position in shares of Yum China (NYSE:YUMC) by 10.6% during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 147,453 shares of the company’s stock after selling 17,426 shares during the quarter. Neuberger Berman Group LLC’s holdings in Yum China were worth $6,438,000 at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in the company. Jackson Grant Investment Advisers Inc. boosted its holdings in Yum China by 526.3% in the 3rd quarter. Jackson Grant Investment Advisers Inc. now owns 595 shares of the company’s stock valued at $26,000 after purchasing an additional 500 shares in the last quarter. Quent Capital LLC purchased a new position in shares of Yum China during the 3rd quarter worth approximately $28,000. Bell Investment Advisors Inc raised its stake in shares of Yum China by 95.6% during the 2nd quarter. Bell Investment Advisors Inc now owns 665 shares of the company’s stock worth $30,000 after buying an additional 325 shares in the last quarter. Atlantic Union Bankshares Corp acquired a new stake in shares of Yum China in the 2nd quarter valued at approximately $45,000. Finally, Caldwell Trust Co purchased a new stake in shares of Yum China in the second quarter valued at approximately $56,000. 85.58% of the stock is owned by hedge funds and other institutional investors.

Yum China Stock Performance

YUMC opened at $51.88 on Friday. Yum China has a 1-year low of $41.00 and a 1-year high of $58.39. The stock has a market cap of $18.32 billion, a P/E ratio of 20.67, a P/E/G ratio of 1.47 and a beta of 0.11. The stock’s 50 day simple moving average is $51.41 and its 200 day simple moving average is $47.44. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.05 and a quick ratio of 1.15.

Yum China (NYSE:YUMC) last posted its earnings results on Wednesday, February 4th. The company reported $0.40 EPS for the quarter, topping analysts’ consensus estimates of $0.35 by $0.05. The company had revenue of $2.82 billion for the quarter, compared to the consensus estimate of $2.72 billion. Yum China had a return on equity of 14.65% and a net margin of 7.87%.Yum China’s quarterly revenue was up 8.8% compared to the same quarter last year. During the same period in the previous year, the business earned $0.30 earnings per share. As a group, equities analysts anticipate that Yum China will post 2.54 EPS for the current fiscal year.

Yum China Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th will be given a $0.29 dividend. The ex-dividend date is Wednesday, March 4th. This represents a $1.16 annualized dividend and a dividend yield of 2.2%. This is a boost from Yum China’s previous quarterly dividend of $0.24. Yum China’s payout ratio is presently 46.22%.

Yum China declared that its board has authorized a stock repurchase program on Friday, December 12th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the company to reacquire up to 5.8% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on YUMC shares. The Goldman Sachs Group reaffirmed a “buy” rating and set a $58.50 price objective on shares of Yum China in a report on Wednesday, February 4th. Weiss Ratings reissued a “hold (c)” rating on shares of Yum China in a report on Wednesday, January 21st. Jefferies Financial Group reaffirmed a “buy” rating and set a $63.64 price target on shares of Yum China in a research note on Thursday, February 5th. CLSA reiterated an “outperform” rating and issued a $55.00 price target on shares of Yum China in a report on Tuesday, November 25th. Finally, Wall Street Zen upgraded shares of Yum China from a “hold” rating to a “buy” rating in a research note on Saturday, February 7th. Three investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $59.05.

Insider Activity at Yum China

In related news, insider Xueling Lu sold 23,504 shares of the stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $55.84, for a total value of $1,312,463.36. Following the sale, the insider directly owned 9,042 shares of the company’s stock, valued at approximately $504,905.28. This represents a 72.22% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Jerry Ding sold 3,000 shares of the firm’s stock in a transaction dated Thursday, February 5th. The shares were sold at an average price of $55.14, for a total transaction of $165,420.00. Following the transaction, the insider owned 915 shares of the company’s stock, valued at $50,453.10. This trade represents a 76.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 135,117 shares of company stock valued at $7,479,590. Insiders own 0.40% of the company’s stock.

About Yum China

Yum China Holdings, Inc operates as the largest quick-service restaurant company in China, through its ownership and franchising of brands such as KFC, Pizza Hut and Taco Bell. The company’s core business encompasses full-service and fast?casual dining, takeout and delivery channels, as well as ancillary services including loyalty programs and digital ordering platforms. Yum China’s restaurants offer a diverse menu that adapts global brand concepts to local consumer preferences, featuring items such as soy?marinated chicken, customized pizzas and region?inspired side dishes.

In addition to its signature brands, Yum China has expanded its portfolio to include innovative concepts tailored to evolving market trends, such as plant?based offerings, self?service kiosks and mobile app integrations.